In this day and age, more and more individuals are being attracted to real estate investing. Finding a good investment in this field means that you are able to find a deal that is lucrative enough for you to sell and turn a quick profit. However, is there any way that you can tell whether it is simply a good real estate deal or just a scam in the making? Here are some tips to help you find investments and avoid scams.
Never Buy a Property You Haven’t Physically Seen
The first step is to actually see a property with your own eyes before you purchase it. Unless you have an opportunity to visually inspect it, how will you know whether or not the seller is being honest about the condition of the property? You need to get as much information as you can about the property, and you also need to be aware of the seller disclosure requirements of the state where the property is located. Touring the property will also give you the opportunity to inspect it for underlying concerns, such as cracks in the foundation, mold, and serious electrical problems.
Be Skeptical of Lenders
Now, don’t get me wrong, most lenders are decent, honest and hardworking individuals. However, there are some lenders who may be looking for easy targets. Basic common sense applies here. If a lender offers you a loan that seems too good to be true, it may be. First of all, if a lender offers you 100% financing for your first loan, be sure to read the fine print. Yes, there are lenders who will offer you a loan without a down payment but know the details involved. DoHardMoney.com warns that any lender that approves a real estate loan without evaluating the property is almost certainly a scammer.
Don’t Yield to Pressure Tactics
If someone is trying to pressure you into buying a property you don’t want, there is probably a catch. One big red flag is if the property in question requires an up-front fee.
Don’t Pay for House Flipping Classes
These “classes” are the ones that purport to know everything there is to know regarding how to flip a house. However, you can find all of this information on your own with careful study without relying on some fake classes. House flipping has a high level of risk. When it comes to buying a home with the intention of selling it as quickly as possible, you need to make sure you’ve made an accurate assessment on so many levels, particularly when it comes to timing expenses, and price (both when buying and selling). If you’re off with any of these things, your profit is definitely at risk.
Keep these tips in mind and you are sure to avoid getting scammed in the real estate game!
One of the best ways you can ensure you aren’t getting scammed is by working with a reputable real estate agent!